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THE CHANGING ROLE OF HUMAN

RESOURCE MANAGEMENT:
What challenges do the modern HR
Manager face in a recessionary and post-
recessionary business environment?

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Coverage
Overview of the Business Environment
Challenges faced by HR managers in the post-
recessionary period
Developments in the employment Function
The changing role of Human Resource Management

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Business environment
Is the crisis over?
Can we say that the crisis is over ?
Different sectors are recovering at different
rates, some faster while others very slow.
Tourism sector recovery is very slow as it
depends on luxury spending.

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Recovery is taking place across
the globe
GDP GROWTH RATES IN %

USA UK CHINA INDIA JAPAN

2007 2.1 2.6 13 9.4 2.3

2008 0.6 0.7 9 6.7 -0.6

2009 -2.3 -4.4 7.8 5.3 -5.7

2010 2.2 0.9 8.9 6.9 1.2

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Challenges ??????

organization's
need for survival
employees need for
survival

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Challenges faced by HR
managers in the post-
recessionary period

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Budget cuts

Companies across the globe have tightened their belt by resorting to


budgetary cuts

 The Zambia government cut on training budget.


 This has a repercussion on Human Resource Managers who deal with
training.
 The in–house training may not yield much fruit.

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High Labour turnover

Change jobs because of the perception that they were


mistreated during the recession.
New job offers in the market offering competitive
rates for people who have gained experience from one
organization.

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Motivating employees

Things that motivate people such as training, bonuses


are reduced during the recession.
Working with de-motivated employees can be very
frustrating. Although Fredrick Herzberg classified
salary among the hygiene factors meaning that money
is not a motivator, its absence de-motivates people.

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Herzberg’s two factor model
Hygiene factors Motivators
Supervision Recognition

Pay and benefits Growth


Company Policy and Administration Achievement

Relationships with co-workers Promotion

Job Security Responsibility

Working Conditions Work itself

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Abraham Maslow’s hierarchy of
needs
Self
actualization

Self esteem

Social need

Security
needs

Physiological
needs

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Offering Short Term Contracts ( Casualisation)

• No loyalty
 The logistical cost
Terminate contract of the person at the end of the
contact even if you still want them just to comply with
the legal requirement( Avoiding “Permanent
Casuals”).?

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Fear of the Next Recession

“Once beaten, twice shy,” so goes an adage.


Organizations are most likely to develop prudent,
proactive and stringent conditions to buffer the
organization against any future recession.
What will be the impact of these stringent conditions
on HR functions such as motivation?  

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More Challenges ?

• Maintain a competitive 0rganization


• Deliver higher performance without
increasing their budget
Improve the productivity of the surviving
employees
Endeavour to keep or raise quality
products

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DEVELOPMENTS IN THE
EMPLOYMENT FUNCTION

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Time Frame Phases Roles and Job titles
Responsibiliti
es

1860s – 1910s Welfare phase Taking care of the Welfare officers


women and young

1920s-1940s Personnel Recruitment and Personnel manager


management (Title selection, job Personnel Officers
change from evaluation, training,
employee collective
management Dept- bargaining
personnel
management Dept)

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Time Phases Roles and Job titles
Frame Responsibilities
1960s – Professional Personnel Recruitment and selection, Personnel Specialist
1980s Management performance evaluation, job Personnel manager
evaluation and grading, Manpower Analyst
training and development,
career management,
compensation and benefits
management personnel
auditing.

Late 1980s – Human Resource Strategic Management Human Resource (HR)


2000s Management Orientation Officers
Human Resource (HR)
Managers
(HR Architects)
2004 and Human capital Measuring HR contribution to Head HR,
beyond Management profitability Business Partner,
Shared services
Manager

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HRM defined
Human Resource Management is a process
of bringing people and organizations
together so that the goals of each other are
met.

 Nowadays it is not possible to show a good


financial or operating report unless your
personnel relations are in order
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MODEL OF THE LINK BETWEEN HR AND PERFORMANCE: Source: Armstrong(2006:23)

HR effectiveness

Business strategy
Quality of
HR outcomes goods &
Employee: services
competence Financial
HR practices
commitment Performance
flexibility
Productivity
HR strategy

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Measuring performance

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Common pitfalls in measuring
performance
Leaving it to people who are fluent in the language of
spreadsheets – numbers.
Measuring against yourself
Looking backwards
Sticking to numbers too long

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THE CHANGING ROLE OF HUMAN RESOURCE MANAGEMENT

"If we didn't sometimes taste adversity, prosperity


would not be so welcome.”
Every problem is also an opportunity in disguise. The
HR manager has to think and rethink many times as to
how his role can change at this testing time of slow
down to save organizations. The changing role of HR
will among others involve:

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HR manager must be a Strategic Partner

HR person contributes to the development of and


the accomplishment of the organization-wide
business plan and objectives.

HR business objectives established to support


the attainment of the overall strategic business
plan and objectives and not vice versa

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The six key things that HR professionals are
most concerned should be linked to business
strategy:
• acquiring people
• developing people
• reward
• retention
• exiting people from the organisation
• motivation.

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HR manager must be a Strategic Partner
cont’d

More than a provider of services


A management partner who shares
accountability for organizational results
Does more than explain what is prohibited

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HR must Learn the business Language

Get to know the business language.

Study some bit of Finance

HR must also be able to do some Political and


Economic Analysis to determine their impact on HR.

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Shift of focus in HR
  To
From
Job Analysis Competency Assessment
Personnel Management HCM
Rule maker Consultant
Functional Orientation Business Orientation
One size fits all Tailored programs
Mutual distrust ( with Partnering
employees)
Focus on activities Focus on impacts

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HR Must take A lead in
Branding the Organisation
An employer brand is a set of attributes and qualities –
often intangible – that make an organisation
distinctive, promises a particular kind of employment
experience, and appeals to those people who will
thrive and perform to their best in its culture”. CIPD

Oracle’s legendary founder and CEO, Larry Ellison, is


on record as saying, ‘Your brand is what people say
about you when you’ve left the room.’

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Talent

Attract, grow and retain the


right people who have the
ability and hunger to drive
and deliver competitive
advantage and superior
Talent
performance.
Continuously upgrade the
Group talent pool.
New trends in HR
Human Resource Outsourcing- lean HR depts.
Change agent- Prepare workers to accept
technological changes by clarifying doubts.

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Percentage of time spent in HR
Functions today and in the future
Present Future

Strategic …25%

Strategic …10% Consultative and


…50%
Developmental

Consultative …25%
Administrative …25%

Administrative …65%

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Future HR Competency
Model
Business
Mastery

Personal
Credibility

Human Change &


Resource Process
Mastery Mastery

To be a true ‘Business Partner’ =


Business Mastery + Change & Process Mastery + HR Mastery

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Organizations of the future will
rely more on its people.
Yesterday: Access to most capital and latest
technology
Today: Offering products with highest
quality
Tomorrow: Maintaining high caliber of
People.

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Conclusion

I know that no one individual can be smarter than all


of us. Together we will overcome the challenges of the
just ended Global Economic crisis.
No matter how big the problem is, no problem is
insurmountable. Tough Time's Never Last, But Tough
People Do! Lets all move from crisis to opportunity!

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THANK YOU FOR LISTENING

John Suzyo Banda


Research and Marketing Manager,
Zambia Federation of Employers (ZFE)
LUSAKA,
ZAMBIA,
CENTRAL AFRICA

Tel +260 211 223336


Mobile +260 977 486 120
Email: johnsuzyo@yahoo.co.uk

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